Delaware ranks among the top three states nationwide for corporate tax favorability, according to a new report by the Tax Foundation and KPMG (Klynveld Peat Marwick Goerdele)
The report, Location Matters, assesses the corporate tax burden in two categories of cities including major and mid-sized for all 50 states. Wilmington specifically ranked in the major city category, as our population exceeds the 50,000 cut off standard used by the survey.
The Delaware Prosperity Partnership and the Delaware Business Roundtable served on the advisory committee for the national study.
The report ranks states within eight business models:
- Corporate Offices
- Research & Development
- Tech Centers
- Data Centers
- Distribution Centers
- Capital-Intensive Manufacturing
- Labor-Intensive Manufacturing
- Shared Services.
Key findings from the nationwide survey included:
- Delaware ranks #2 for overall corporate tax favorability for new firms.
- Delaware ranks #3 for overall corporate tax favorability for mature firms.
- Delaware ranks #1 nationwide for tax favorability in the manufacturing sector.
“Delaware is a great place for businesses large and small to put down roots, grow and create good- paying jobs,” said Governor John Carney, who is co-chair of the DPP Board of Directors. “This Location Matters report underscores our commitment to making sure that Delaware’s tax structure is attractive to small and large businesses that may choose Delaware for growth and expansion.”
Fellow DPP Board co-chair Rod Ward, who is president and chief executive officer of Delaware- headquartered international company CSC, agreed.
“Corporate tax structure is an important variable for businesses considering a new location,” Ward noted, “and the Location Matters report validates an important variable in Delaware’s value proposition for businesses contemplating their next move.”
Dr. Janice Nevin President and CEO of ChristianaCare and chair of the Delaware Business Roundtable, elaborated.
“Creating long-term, well-paying jobs is a critical part of establishing a growing economy that contributes to the wellbeing of all Delawareans,” Nevin said. “This study confirms that our state is very competitive when it comes to corporate taxes, which helps to provide a good foundation for economic growth. We must also continue to focus on the other variables that are essential to creating job opportunities, including expanded broadband availability, infrastructure improvements, and education and training.”
Read the full report by clicking here.